Acoustic emission (AE) was used in a fatigue experiment to characterise AE signals and to rapidly determine the fatigue limit of AZ31B magnesium (Mg) alloy. The AE signals during fatigue were characterised according to waveforms and frequency. Meanwhile, the energy dissipation in the process of fatigue, which was represented by the accumulative AE energy, can be used to determine the fatigue limit. Based on the AE parameters, the fatigue limit was 97 MPa, with an 8% error value when compared with the results obtained by the conventional S–N curve method. This model only requires the accumulated energy of the signals during strain hardening. Therefore, the fatigue limit can be determined rapidly.